A report from analyst firm TechMarketView, the UK software and IT services industry is predicted to decline by 5 percent in real terms from 2011 to 2016.

While the software and IT services (SITS) markets are expected to grow 8 percent by 2016, the increase of £44.3 billion in the UK market will represent an overall decline.

While expectations rest on an overall decrease in growth over the coming years, TechMarketView reported increased for opportunities for SMEs, identifying a: "golden opportunity for SMEs to snatch business from larger players."

TechMarketView chairman Richard Holway said: "The baggage of established businesses makes it a lot harder for them to be agile in today’s market, which presents an enormous opportunity for SMEs and start-ups.”

UK outsourcing sales plummets 80% for Logica

UK outsourcing is expected to grow rapidly in the second half of 2012